Judge knocks felonies down to misdemeanors for cooperating witness in probe

A former bond underwriter who was a key figure in the corruption investigation at South County school districts was sentenced to probation and almost $8,000 in fines Monday.

Gary Allen Cabello had pleaded guilty to two felony conspiracy charges, but those were reduced to lesser misdemeanors during a sentencing hearing in front of Superior Court Judge Ana Espana.

The move was not opposed by prosecutors, who relied on Cabello’s cooperation in their investigation of gift-giving from contractors to school officials and administrators that has led to 18 people being charged.

Espana ordered Cabello, who prosecutor Leon Schorr said is now broke, to pay $7,994 in fines and serve three years on probation. He will also have to perform 100 hours of community service, the judge ordered.

Cabello, 55, worked for two financial firms that together participated in underwriting almost $350 million in bond offerings for Southwestern Community College District and Sweetwater Union High School District.

Prosecutors said that in 2006 and 2007, he spent more than $7,500 on entertainment for Sweetwater officials, who were then weighing which firms would underwrite $644 million in bonds.

Cabello treated former Sweetwater Superintendent Jesus Gandara to $327 in drinks, dancing and cigars one night and spent $860 on a Padres game and Donovan’s steakhouse meal for former board member Greg Sandoval another night, prosecutors said, among many other outings.

An investment officer who served on the bond selection committee testified to the grand jury that she received pressure from the Gandara administration to select Cabello even though he was the least qualified bidder.

Both Gandara and Sandoval pleaded guilty to felony charges on Friday.

Also formally sentenced on Monday was former Southwestern Community College President Raj Chopra. He had earlier pleaded guilty to a misdemeanor charge of not fully reporting income on state-mandated disclosure forms. He performed 42 hours of community service, and Espana sentenced him to three years probation and a fine of $4,500.

San Ysidro school board member Yolanda Hernandez had her scheduled sentencing continued until April 29. She pleaded guilty in October to a misdemeanor perjury charge.